A Nil Rate Band Discretionary Trust within the Will is a type of trust that is established within the will of an individual. As per the definition, this trust will not be created until the death of the individual. The primary objective of this trust is to direct the Nil Rate Band, which is the tax-free allowance for inheritance tax purposes, to the designated trustees.

This type of trust is often recommended for married couples who want to ensure that their tax-free allowance is utilised efficiently. On the death of the first spouse, the trust is created to make use of the available Nil Rate Band. This allows the surviving spouse to benefit from the trust's assets while protecting them from inheritance tax liabilities.

A Nil Rate Band Discretionary Trust within the Will is classified as a discretionary trust since the trustees have discretion on how to distribute the assets among the beneficiaries. The beneficiaries do not have any automatic right to receive any part of the trust's assets. The trustees have full discretion to distribute the assets as they see fit.

The use of a Nil Rate Band Discretionary Trust within the Will can be beneficial in mitigating inheritance tax liabilities, protecting the assets from creditor claims, divorce settlements, and care home fees. It also provides the flexibility to change the beneficiaries of the trust and how the assets are distributed.